Liberty accident insurance ( Castellano )
13. Consequences of not reporting an increase in risk ( Contents )
- Should a claim be made when the increase in risk has not been reported, the insurer shall be released of its obligation to provide benefits if the policyholder or the insured has acted in bad faith. Otherwise, the benefits provided by the insurer will be reduced based on the proportional difference between the accorded premium and that which would have applied had the true magnitude of the risk been known.
- If the contract is rescinded during the valid term of the policy due to an increase in risk resulting in the adoption of a higher premium, the entirety of the collected premium shall correspond to the insurer if the increase in risk is attributable to the insured, he or she will be entitled to the reimbursement of the portion of the paid premium corresponding to the period of the insurance year underway which has not yet elapsed.
14. In case of decrease in risk